Pershing expands its digital advice with NextCapital partnership

The robo chooses its first custodian for its own expansion

Feb 23, 2016 @ 6:00 am

By Alessandra Malito

Pershing LLC has partnered with NextCapital, an adviser-facing robo platform, to be its first custodian.

This time, however, the robo has chosen Pershing as the custodian in what Rob Foregger, co-founder of NextCapital, said is the company's expansion to offer automated investment advice outside of defined contribution plans where the robo got its start. Pershing, based in Jersey City, is a clearing firm unit of Bank of New York Mellon Corp, and is the first custodian NextCapital has chosen to custody its assets.

"Our broader vision is really actually being able to help our partners manage their client's entire lifecycle," Mr. Foregger said.

NextCapital, which started in the retirement market providing digital advice to defined contribution plans, already integrates with 401(k) record keeping systems and supports 401(k)s, individual retirement accounts and retail brokerage accounts on its platform. With the partnership, NextCapital will assist advisers in providing holistic portfolio tracking, planning, savings and portfolio management advice for out-of-plan moments, including rollover and retirement income options.

Pershing was ranked seventh in number of custodian clients, according to InvestmentNews research.

Mr. Foregger said NextCapital plans to be multi-custodial in the future.

Last summer, Pershing teamed up with Marstone, a business-to-business robo-adviser. In that case, the custodian had chosen Marstone to offer its advisers a robo option for working with clients. Ben Harrison, head of business development and relationship management at Pershing Advisor Solutions, said it is continuing to expand its digital offerings.

"On the client front, having the ability of a firm like NextCapital to provide a high-powered experience is something we see a tremendous opportunity for institutions," Mr. Harrison said.


What do you think?

View comments

Recommended for you

Featured video


What are the paths forward for the DOL fiduciary rule?

Deputy editor Bob Hordt and senior columnist Mark Schoeff discuss the the Fifth Circuit's decision to vacate the fiduciary regulation.

Latest news & opinion

UBS reels in $30 billion J.P. Morgan team focused on Mexico

The five-member team will be based in Miami, Houston and New York.

Higher estate-tax exemption level could mean less work for advisers

With fewer taxpayers affected by the federal estate tax, the demand for estate planning is diminished.

Stocks plunge, advisers tell clients to hang tight

Though planners encourage calm, some are preparing investors for a correction.

Lightyear Capital's Donald Marron said to be in the hunt for Cetera Financial Group

The veteran brokerage executive, who bought Advisor Group in 2016, owned Cetera once before.

What to watch for next with the DOL fiduciary rule

Much hinges on whether the Labor Department appeals the 5th Circuit decision by April 30.


Hi! Glad you're here and we hope you like all the great work we do here at InvestmentNews. But what we do is expensive and is funded in part by our sponsors. So won't you show our sponsors a little love by whitelisting It'll help us continue to serve you.

Yes, show me how to whitelist

Ad blocker detected. Please whitelist us or give premium a try.


Subscribe and Save 60%

Premium Access
Print + Digital

Learn more
Subscribe to Print